Remortgage term

askid

Hello

My mortgage term is coming to an end, and I'm torn between a 2-year and a 5-year fixed rate. I wonder what people choose in the current financial climate. A lot is going on in the UK and in the world, too. 

Cheers

Mark_d

I assume it's your fixed rate period that's coming to an end rather than your mortgage term.

I remortgaged a couple of months ago and got a 2 year fix at 3.61%.  I think I'd generally go for 2 year deals unless I was getting an exceptionally good rate on a 5 year deal.  Prior to my remortgage I had a 5 year fix at 1.49%

saajan_12

The rates traders at the mortgage companies also know what is going on in the UK and in the world, and have set the rates according to what people expect to happen. So from your perspective I'd just focus on how long you want to lock in for. Eg
-do you envisage a move in the next 5 years?
-do you value certainty or flexibility more?

Yorkie1

Also, whether you are likely to be going for products with fees - you may be likely to pay more overall in fees if you have a series of 2 year fixes

Newbie_John

2 years ago I had a choice between 4.0% 5 year fix or 4.4% 2 year fix (both with fees). I chose 2 years as I've seen all the predictions that rates will be under 3% in 2 years.. none of that happened and no regret not taking 5 really.
This year I went for 2 years only as there was no much difference between the 2 & 5 years, and ended up with 4.02% (no fee this time as it was cheaper than 3.78% with fee).

So as @saajan_12 says, the 2,3,5 years rates are set by analysts and you shouldn't be really guessing or following others - just focus on the fees, length (will you be there in 4 years time?) etc.